The financial sector is different from other areas of activity, and in order to succeed there, you need to have a certain amount of knowledge. But this will not be enough to create a business plan of the bank and its successful implementation. To establish your own credit institution, you will need enough funds for investments. However, nothing is impossible, and if you set a goal, you can achieve it. A commercial bank is an ongoing project, but people with experience in this area should deal with it. The financial sector is considered one of the most promising and profitable. It is worth noting that a huge number of budgetary institutions are currently operating, so the competition in this segment is quite fierce.
First preparations
According to statistics, financing a business project of a commercial bank is considered one of the most profitable. You should find a suitable room, draw up the correct structure, calculate all the costs in advance. In other words, draw up a competent business plan for opening a bank.
Before you engage in a project, you need to analyze the state of the market in your area. Marketing research is an integral part of any business. Perhaps there are many credit institutions in the required territory, then your business may turn out to be unprofitable. In this case, you should come up with a specialization that would distinguish your bank from the rest. Of course, it will be quite difficult to do this, but if it works out, the result will not be long in coming. Recently, banking is only developing, and the government is providing significant support to this business.
Direction selection
The business plan of a commercial bank should be based on your activity. Existing practice shows that large credit organizations are engaged in several areas at once, and they do it very well. Here we are talking about business giants: Sberbank, VTB 24, etc. The new lending institution should be different from the rest, specializing in one thing.
So, small and medium-sized banks choose a direction, for example, issuing loans at a low interest rate, and promote this offer on the market. You can focus on servicing corporate clients, legal entities, small business representatives, etc. The main thing is the quality of work, because the client chooses between a huge number of different organizations, and to be served with you, you need to work at the highest level.
The business plan of the bank should be carefully thought out and contain development directions in the order of their priority. This will greatly facilitate future activities.
Perspective analysis
In the previous question, the necessity of choosing a priority area of work was indicated. In order not to be mistaken at this stage, you need to carefully analyze the marketing environment, make a forecast for the next five years and set strategic goals. As an example of a bank’s business plan, we can cite the directions of analysis of prospects:
- study of the legislative framework and macroeconomics;
- study of the work of competitors and their interaction with the external environment;
- marketing developments;
- sales forecasts;
- customer base formation.
You need to understand what at the particular moment the population is most interested in: deposits, loans, the need to open branches, the ability to perform any operations through a mobile application and a computer. And starting from a demanded position, look for potential customers, get in touch with them, offer their services, guarantee privileges.
The Importance of Strategic Planning
Without marketing research, one should not conquer this area and try. Remember: all further decisions are based on the results of the analysis! After you decide on the priority direction, you need to draw up a business development plan for the bank for the next 3-5 years. It should include strategic goals.
This part of the work should not be underestimated, only after a while each entrepreneur will understand how incredible this step is. The following objectives are usually distinguished:
- gaining customer confidence, top-level service;
- gradual expansion of its activities, improvement of existing products;
- attraction of new investments;
- reduction of risk situations;
- creating a career ladder for employees, increasing motivation in order to search for qualified personnel.
Type of structure of a credit institution
The financial sector implies the presence of several types of structures, the choice of which depends on the direction of your activity. You need to decide on this before opening the organization. There are five different types in total:
- central, which is a state bank;
- commercial, the main purpose of which is to make a profit;
- universal, able to provide a large number of different services;
- investment, carrying out its activities when working with investments;
- savings, which deals with deposits and preservation of funds.
Bank specialization is also selected separately. Currently, mainly market-based lending institutions are common. Their peculiarity lies in the fact that assets contain securities, and liabilities own funds.
Bank Services
The range of products and services that a lending institution provides to customers depends entirely on the chosen specialization. The business plan of the bank’s branch should have clearly defined instructions regarding the services provided. It is worth highlighting the most popular and priority types of financial assistance:
- brokerage operations in the foreign exchange and stock markets;
- work with deposits, deposits;
- issuing and servicing plastic cards (in addition to favorable conditions, you should consider creating an interesting design);
- issuance of loans and credits;
- opening and maintaining bank accounts;
- the implementation of cash services.
Despite the fact that now everyone is switching to online service, there are still many people who prefer to solve all problems with their own eyes, in the department. Therefore, this fact should also be taken into account when creating a bank business plan.
Obtaining a license
To open your own credit institution, you must obtain the appropriate permission and apply for a license. But first, it is worth registering a CJSC (closed joint-stock company) and register with the tax service. There you can get the organization identification number. The bank’s business plan with calculations should include this item of expenditure, as it will have to pay several state duties, as well as make a number of other payments.
Among the main permissions to be obtained are:
- license of the Central Bank of the Russian Federation;
- a document confirming the fact of registration with the Russian State Pedagogical State Institution (Russian State Assay Chamber);
- permission of the customs committee.
Management and staff of a credit institution
It is worth noting that the bank as a credit institution can only function as a joint stock company. Accordingly, the organization is managed by the Meeting of Shareholders. It usually takes place no more than 1-2 times a year, and during the meeting all current issues are discussed. For example, a credit institution development strategy for the next 12 months is being developed, and necessary managerial decisions are made.
The current activities of the bank are controlled by the Board of Directors; executive power is vested in the Management Board of the bank. It is the last organ that directly subordinates all other structural units. The staff is formed on the basis of standard requirements for a bank employee.
What are structural units?
In most cases, we are talking about branches of a credit organization where clients can use all the services of the bank. First you need to open at least one office so that people know where to go in case of any questions.
Let us present an example of a business plan for a bank branch. Usually it contains the following departments: cash, foreign exchange and deposit operations, economic and accounting, securities, lending, etc.
In addition to the main ones, additional ones can be organized that will provide support, for example, the security service, legal department , etc. Before hiring a new employee, the security department must check for any violations. If a person passes it, has the necessary knowledge and qualifications, then he becomes part of the bank system.
In addition, each credit institution has an Internal Control Service, which reports to the Board of Directors. Her responsibilities include:
- checking the work of employees for compliance with all necessary norms and standards;
- requirement of documents;
- attracting employees from other departments.
Bank business plan example
Each year, marketing experts research all kinds of business areas, evaluate profits, expenses, etc. So, to open a small credit institution, investments of at least 100 million rubles will be required.
It is quite difficult to give a sample business plan for a bank in the article, since it is a package of several documents. But to describe the main costs is quite within reach. Most of the investment will go unambiguously for office rent, repairs, staff recruitment, preparation of necessary documents and obtaining all licenses and permits. If you want to open a large bank that can provide a wide range of services, then much more investment will be required.
As for the payback of the project, then here it is not necessary once or twice. Of course, this moment should be reflected in the bank’s business plan, but it is certainly not an easy task to predict it. On average, the payback period ranges from 5 to 10 years.
The risks
When developing a business plan of a bank, it is necessary to take into account all the points and nuances. It is recommended to foresee the most unfavorable situation, and describe in detail the algorithm for getting out of it. Risk is an integral part of any project. It is impossible to predict everything, so you need to be prepared for an unpleasant development of events.
Often, entrepreneurs do not even consider some factors as risks, which is one of the grossest mistakes. Indeed, hindsight leads to additional costs, increases the payback period, etc. The market for products and services is the first thing a beginner businessman should think about. After all, the organization should have target customers, who are likely to use the services of a credit organization.
Summarizing all of the above, it can be noted that the implementation of the project of opening a credit organization is a very painstaking and complicated business, but is being implemented. If you take responsibility for drawing up a business plan of the bank, calculate as many risks as possible, attract the necessary amount of funds, you can significantly succeed in your undertaking. As for profitability, there is no doubt that opening a bank is one of the most economically profitable investments.